Feb 4 (Reuters) - Australia's AGL Energy Ltd AGL.AX said on Thursday it expects to book A$2.69 billion ($2.05 billion) in charges as the dour outlook for energy prices forced it to write down the value of its assets and previously signed wind energy contracts.
The company said it sees a sustained and material reduction in energy prices due to the slump in the wholesale power market and government plans to underwrite new power plants.
AGL has decided to set aside A$1.92 billion for long-term wind offtake agreements it entered between 2006 and 2012 at prices that were much higher than the current spot and forecast prices.
Of the rest, A$1.11 billion is for environmental restoration provisions, while A$532 million relates to the impairment of coal and gas generation and legacy natural gas production assets.
The charges will be recorded in AGL's half-year results due on Feb. 11, but are not expected to impact the company's full-year underlying profit.
AGL said the moves to are expected to support fiscal 2022 and 2023 profit by A$50 million to A$80 million.
($1 = 1.3118 Australian dollars)